Mortgage brokers have been quick to dismiss claims that a BBC Question Time audience member was told her mortgage offer had increased from 4.5% to 10.4% after it was pulled by a lender.
The audience member asked: “I just want to know what the plan is for mortgages. [I ask] because I was actually in the process of getting a mortgage as a young person and told that my initial interest rate would be 4.5%, and I was told today that the lender has pulled that offer and now the best offer I can get is about 10.5%.
“They are [now] saying you need to be immediately putting your application through as lenders may pull these offers.”
The comments drew gasps from the audience but brokers have said, whilst not dismissing her fears, that there was little chance of such a hike in reality.
She added that she had been pulling documents together, such as ID together, following her intial offer two weeks ago and that her latest offer actually stood at 10.4%.
The BBC’s coverage comes at a time when brokers are calling on national media to remain calm as lenders reprice.
Numerous media outlets have been called to task for stories stating that the mortgage market had essentially closed and that deals were being snatched from borrowers.
In reality the market has been repricing and a number of lenders who initially withdrew their products have now returned.
Indeed, mortgage heavyweight Nationwide increased its rates but its 2-year, 3-year and 5-year products are all available at sub-6%. They were not alone in repricing either with numerous lenders either increasing rates or returning to market before the end of the week – many of those yet to return are expected to have finalised their repricing in the coming days.
Danny Robinson, director of Grey Matters Specialist Lending, took to LinkedIn and said: “All media outlets need to qualify their guests and participants before airing live to their viewers!
“Scaremongering is not helpful to anyone save for the opposing parties and said news channel.
“Nowhere on this earth has a lender gone from 4.5% to 10.4% overnight, and the word offer has been badly misused without correction.
“From what this lady said she didn’t even have an offer and her back story is unknown so to air this comment is irresponsible.
“Brokers should be spending time helping their clients find solutions in the current climate not trying to put out fires caused by irresponsible media outlets.”
Robinson was backed up by other mortgage professionals who were quick to point out that while some lenders do offer rates in excess of 10% it is hardly the norm.
One branded the BBC’s story “absolute tosh” while another well-known broker said they had received “unnecessary calls from people today fearful their rates will go above 10%”.
The Intermediary will be covering the new mortgage rate launches this week.
